NexPoint Residential Trust (NYSE:NXRT) Posts Earnings Results, Beats Expectations By $0.07 EPS

Key Points

• Q1 beat and guidance raise: NXRT reported EPS of ($0.27), beating estimates by $0.07 and FFO of $0.68/sh, and management raised FY‑2026 EPS guidance to $2.57.
• Operational momentum: Management cited improving same‑store occupancy (~93.6% to ~93.9%), stronger lead‑to‑lease conversion and a ~45.7% YoY drop in bad debt, and reaffirmed full‑year Core FFO guidance of $2.42–$2.71 after expense discipline and advisor fee income.
• Financing headwind but balance‑sheet optionality: Swap rolloffs and a higher forward curve will add roughly $2.2M of incremental interest expense in 2026, yet the company has ~$161.5M of available liquidity, no material debt maturities until 2028, and approved a $0.53 quarterly dividend (~7.5% yield).

NexPoint Residential Trust (NYSE:NXRT - Get Free Report) released its earnings results on Tuesday. The financial services provider reported ($0.27) EPS for the quarter, beating the consensus estimate of ($0.34) by $0.07, Zacks reports. NexPoint Residential Trust had a negative return on equity of 9.52% and a negative net margin of 12.74%.The firm had revenue of $63.54 million during the quarter, compared to analyst estimates of $63.46 million. NexPoint Residential Trust updated its FY 2026 guidance to 2.570-2.570 EPS.

Here are the key takeaways from NexPoint Residential Trust's conference call:

• Interest expense headwind: Swap benefits are rolling off and the forward curve moved higher, adding roughly $2.2M of incremental interest expense in 2026 and pushing full‑year interest expense to ~$69.3M, creating quarter‑to‑quarter pressure as swaps expire.
• Guidance reaffirmed — NXRT kept full‑year 2026 Core FFO guidance at $2.42–$2.71 and same‑store NOI targets after absorbing the swap impact through stronger insurance renewals, expense discipline and advisor fee income.
• Operational momentum from AI and centralized ops: Same‑store occupancy is improving (93.6% Q1, ~93.9% April), lead‑to‑lease conversion of 4.9% (vs 3.2% benchmark), bad debt down ~45.7% YoY, and concessions are well below peers (1.9% vs 5.7%) with management forecasting a sharp decline in concession use in H2.
• Balance sheet and valuation optionality: ~$161.5M available liquidity, no material maturities until 2028, and an estimated NAV of $47.70/share (midpoint) implying ~44.7% discount to the stock price; management plans capital recycling and DST activity as potential upside.

NexPoint Residential Trust Stock Down 2.2%

Shares of NexPoint Residential Trust stock traded down $0.64 on Wednesday, hitting $28.22. 217,244 shares of the company's stock traded hands, compared to its average volume of 212,805. NexPoint Residential Trust has a 52-week low of $23.79 and a 52-week high of $38.93. The company has a quick ratio of 2.27, a current ratio of 2.27 and a debt-to-equity ratio of 5.27. The stock has a market cap of $719.31 million, a P/E ratio of -22.22 and a beta of 1.18. The firm's 50-day moving average is $26.50 and its 200 day moving average is $29.08.

NexPoint Residential Trust Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th will be paid a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a dividend yield of 7.5%. The ex-dividend date is Monday, June 15th. NexPoint Residential Trust's dividend payout ratio is -166.93%.

Insiders Place Their Bets

In related news, insider Matt Mcgraner acquired 2,000 shares of NexPoint Residential Trust stock in a transaction on Friday, March 20th. The shares were purchased at an average cost of $24.37 per share, for a total transaction of $48,740.00. Following the purchase, the insider directly owned 331,334 shares of the company's stock, valued at $8,074,609.58. The trade was a 0.61% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Paul Richards acquired 1,500 shares of the firm's stock in a transaction on Thursday, March 19th. The shares were bought at an average cost of $24.81 per share, with a total value of $37,215.00. Following the completion of the acquisition, the insider owned 30,359 shares in the company, valued at $753,206.79. This represents a 5.20% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders purchased 8,700 shares of company stock valued at $223,777. Insiders own 16.63% of the company's stock.

Institutional Investors Weigh In On NexPoint Residential Trust

Institutional investors have recently modified their holdings of the stock. Federated Hermes Inc. increased its holdings in NexPoint Residential Trust by 6.8% in the second quarter. Federated Hermes Inc. now owns 13,355 shares of the financial services provider's stock valued at $445,000 after buying an additional 845 shares during the last quarter. BNP Paribas Financial Markets raised its holdings in shares of NexPoint Residential Trust by 22.1% during the third quarter. BNP Paribas Financial Markets now owns 13,401 shares of the financial services provider's stock worth $432,000 after purchasing an additional 2,430 shares during the period. Tidal Investments LLC raised its holdings in shares of NexPoint Residential Trust by 35.6% during the second quarter. Tidal Investments LLC now owns 12,901 shares of the financial services provider's stock worth $430,000 after purchasing an additional 3,387 shares during the period. Amundi lifted its position in shares of NexPoint Residential Trust by 23.3% in the 4th quarter. Amundi now owns 13,383 shares of the financial services provider's stock worth $403,000 after buying an additional 2,528 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD lifted its position in shares of NexPoint Residential Trust by 7.9% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 12,793 shares of the financial services provider's stock worth $386,000 after buying an additional 942 shares during the last quarter. Institutional investors and hedge funds own 76.61% of the company's stock.

Analyst Upgrades and Downgrades

NXRT has been the subject of a number of research analyst reports. Raymond James Financial reissued an "underperform" rating on shares of NexPoint Residential Trust in a research report on Friday, February 27th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of NexPoint Residential Trust in a research report on Tuesday, April 21st. Zacks Research upgraded shares of NexPoint Residential Trust from a "strong sell" rating to a "hold" rating in a research note on Friday, January 16th. Citigroup reaffirmed a "market perform" rating on shares of NexPoint Residential Trust in a report on Tuesday, March 10th. Finally, Truist Financial dropped their price target on shares of NexPoint Residential Trust from $30.00 to $27.00 and set a "hold" rating on the stock in a research note on Wednesday, March 11th. Five investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Reduce" and an average price target of $34.75.

NexPoint Residential Trust News Summary

Here are the key news stories impacting NexPoint Residential Trust this week:

• Positive Sentiment: Q1 FFO and revenue beat estimates — NXRT reported FFO of $0.68/sh, above the consensus of $0.57, and revenue roughly in line with expectations, a surprise that helped lift REIT sentiment. Zacks: Q1 FFO and Revenues Beat Estimates
• Positive Sentiment: Management raised FY‑2026 EPS guidance to $2.57 (vs. street ~$2.23), signaling confidence in 2026 cash‑flow outlook and supporting valuation upside for the REIT. Press Release: Q1 Results
• Positive Sentiment: Board approved a $0.53 quarterly dividend (≈7.6% yield reported), payable June 30 — a strong income signal for yield‑oriented investors. Press Release: Dividend Announcement
• Positive Sentiment: Operational actions: management highlighted value‑add progress, expense control and a $33M paydown on its credit facility — reducing leverage risk. Press Release: Q1 Results
• Neutral Sentiment: Earnings call commentary and analyst writeups noted the company is “navigating challenges” in the operating environment; management discussion provides color but no material change to guidance beyond the raise. Yahoo: Q1 Earnings Highlights
• Negative Sentiment: Underlying fundamentals remain mixed: Q1 produced a net loss (~$6.8M), negative net margin and negative ROE; FFO is down from $0.84 a year ago, which may temper enthusiasm despite the quarter’s beats. MarketBeat: Q1 Results Summary

About NexPoint Residential Trust

NexPoint Residential Trust is a real estate investment trust focused on the acquisition, leasing and management of single‐family rental homes across the United States. The company targets suburban and Sun Belt markets with favorable demographic trends, seeking to build a diversified portfolio of standalone residences that serve the growing demand for quality rental housing. By concentrating on professionally managed homes rather than multi‐family apartments, NexPoint Residential Trust aims to offer tenants the benefits of privacy and space, while generating predictable rental income for investors.

The firm’s investment strategy combines direct acquisitions of built single‐family homes with selective joint ventures and partnerships to optimize scale and geographic diversification.